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dc.titleParking Taxes as a Second Best Congestion Pricing Mechanism
dc.contributor.authorWilson, Riley
dc.contributor.authorMiller, Sebastián J.
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2015-11-12T00:00:00
dc.date.issue2015-10-29T00:00:00
dc.description.abstractGrowing vehicle use and congestion externalities have led many to consider alternative congestion pricing mechanisms, as road pricing often has high infrastructural costs and faces public opposition. This paper explores the role of parking taxation in reducing congestion by considering a natural experiment created by the progressive January 1, 2012 Chicago parking tax increase. Exploiting differences in vehicle use across income groups, it is estimated that the approximately $2 a day parking tax increase led to a 4-6 percent reduction in total vehicle trips in high-income areas, with the largest response seen on roads more heavily used by commuters. Also found are corresponding increases in use of public transit and a 3. 1 percent aggregate reduction in vehicle trips. It is concluded that parking taxes can help mitigate congestion externalities, although they are no more than about half as effective as more efficient congestion tolls.
dc.format.extent45
dc.identifier.doihttps://doi.org/10.18235/0000205
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Parking-Taxes-as-a-Second-Best-Congestion-Pricing-Mechanism.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectTaxation
dc.subjectIncome, Consumption and Saving
dc.subjectDevelopment Bank
dc.subject.jelcodeH31 - Household
dc.subject.jelcodeQ53 - Air Pollution • Water Pollution • Noise • Hazardous Waste • Solid Waste • Recycling
dc.subject.jelcodeR41 - Transportation: Demand, Supply, and Congestion • Travel Time • Safety and Accidents • Transportation Noise
dc.subject.jelcodeR48 - Government Pricing and Policy
dc.subject.jelcodeR52 - Land Use and Other Regulations
dc.subject.keywordsIDB-WP-614;Congestion, Second-best pricing, Traffic, Parking, Parking tax, Parking demand
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1219
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